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News Indirect Tax-GST

  • Feb 18, 2019
  • Merger of firm as going-concern will not attract GST, rules AAR

    An Advanced Authority Ruling (AAR) has upheld that merger of a proprietorship firm as a going-concern with a company is not a supply and hence it does not involve payment of Goods and Services Tax (GST) on the fixed or current assets. Also, un-utilised ITC (Input Tax Credit) balance of the firm can be transferred to the company which is taking over, the ruling said. The applicant is BM Industries, a proprietorship firm based in Yamunanagar, Haryana, engaged in manufacture and sales of aluminium profiles.

  • Feb 18, 2019
  • Revenue department plans panel to tackle bogus e-way bills

    The revenue department is planning to set up a committee of tax officers to suggest steps to deal with bogus e-way bills. Many instances of bogus e-way bills and fake invoices have come to the notice of the Central Board of Indirect Taxes and Customs (CBIC) since April last year. Instances on bogus e-way bills based on fake invoices have been detected since April and the tax evasion involved worked out to about Rs 5,000 crore, an official told PTI.

  • Feb 15, 2019
  • GST: threshold raised for suppliers of goods in most States

    From April 1, all the States barring Kerala and Telangana, and two Union Territories (with assemblies), will have higher annual threshold limits for mandatory registration for GST for goods suppliers. There is no change in the limit for service providers. According to information available with the Finance Ministry, 18 States and two UTs have exercised an option to revise the annual threshold limit; for nine States, the option was deemed to have been exercised.

  • Feb 15, 2019
  • Companies stare at cash flow problems due to new credit utilisation rules

    A tweak in the rule of how Goods and Services Tax (GST) credit should be availed is set to create a major cash flow problem for several companies beginning this month. The government late last year had come out with credit utilisation mechanism that companies have to follow beginning this month. Under the GST framework, to avoid double counting of taxes, companies can accumulate tax paid on raw materials against those levied on goods they sell.

  • Feb 15, 2019
  • GST relief for realty sector coming: Piyush Goyal

    Finance Minister Piyush Goyal on Thursday said the government is considering giving relief to the real estate sector and the next GST Council meeting could take some steps to address their issues even as he asked the banks to meet the realty sector on stalled projects in two weeks. At the industry body CREDAI event here, he also advised the realty sector to sell off inventory even in the current pricing about which the realtors complain as being low.

  • Feb 09, 2019
  • GST relief for real estate: State FMs to recommend 5% rate on under-construction houses

    A group of state finance ministers (GoM) on Friday decided to recommend a GST rate cut on all under-construction houses to 5%, from 12% at present, and slashing of GST rate to 3% from 8% on ‘affordable housing projects’. However, the rate cuts would be accompanied by denial of input tax credit (ITC) to the builders. The proposed change in the tax structure for under-construction housing projects is intended to correct the practice of builders not passing on the benefit of reduced tax incidence under GST compared to the previous regime to consumers. It could also give a further boost to affordable housing projects, incentivised by the government.

  • Feb 08, 2019
  • Tax authorities to levy interest on cash, ITC component of GST paid after due date

    Tax authorities have made it clear that interest will be levied on both cash and input tax credit (ITC) component of GST paid after the prescribed due date. Although the standing order has been issued by the Principal Commissioner of Hyderabad GST Commissionerate, experts say the same will be applicable for all the regions as it draws inference from C-GST (Central Goods & Services Tax)/S-GST (State Goods & Services Tax) Act. The order also made it clear that recovery of such interest will be recoverable arrears.

  • Feb 07, 2019
  • Late filing: Hyderabad GST commissionerate orders interest levy on input tax credit

    In case of delayed GST return filing, a taxpayer is liable to pay interest not only on the outstanding tax liability but also on the input tax credit (ITC) balance in the electronic credit ledger maintained on the GST Network portal, a Hyderabad GST commissionerate order said. This has raised the heckles of the industry as it goes against the proposed amendment in the GST law and may even be replicated by other commissionerates, tax experts said. A regular GST taxpayer has to pay a late fee of Rs 100 per day along with 18% interest on the tax liability.

  • Feb 04, 2019
  • Full benefits of GST only from 2020-21: Interim Budget

    The Interim Budget 2019-20 may have kept an ambitious growth target for the Goods and Services Tax for next fiscal, but it doesn’t expect benefits from the indirect tax regime to flow in until 2020-21. “Accrual of the full benefit of GST reforms and revenues is expected to take some more time and, therefore, the stabilisation phase is expected to continue in 2019-20 too,” the Budget documents have noted, adding that the full benefits of GST reforms should start accruing from 2020-21 and completely stabilise thereafter to ensure sustainable fiscal path.

  • Feb 04, 2019
  • GST collection tops Rs 1 lakh crore in January

    GST collections in January rose to Rs1.02 lakh crore — the second highest monthly mop-up after April — the finance ministry said Saturday. This is a significant increase from the collection of Rs94,725 crore in December 2018, and 14% higher than January 2018 collection of Rs89,825 crore. The total number of sales return or GSTR-3B filed for the month of December up to January 31, 2019, is 73.3 lakh. “The total gross GST revenue collected in January 2019 is Rs1,02,503 crore, of which Central GST is Rs17,763 crore, state GST (SGST) is Rs24,826 crore, integrated GST (IGST) is Rs51,225 crore and cess is Rs8,690 crore,” the ministry said in a statement.

  • Feb 02, 2019
  • GST collection crosses Rs 1-lakh crore mark in January

    GST collections in January rose to Rs 1.02 lakh crore -- the second highest monthly mop-up after April, the finance ministry said Saturday. This is a significant increase from the collection of Rs 94,725 crore in December 2018, and 14 per cent higher than January 2018 collection of Rs 89,825 crore. The total number of sales return or GSTR-3B filed for the month of December up to January 31, 2019 is 73.3 lakh.

  • Feb 01, 2019
  • GST collections: Good news for Modi govt on Budget eve, January revenue mop-up exceeds Rs 1 lakh crore

    The Goods and services tax (GST) collection in January (for December) came in at over Rs 1 lakh crore, the finance ministry said in a tweet on Thursday, amid reports that the revenue shortfalls, primarily in GST, were impinging on its plan to contain the budget deficits. The GST collections exceeded the Rs 1-lakh-crore mark only twice in past — in April and in October. Assuming the January mop-up to be exactly Rs 1 lakh crore, the monthly average collection for the April-January period would be Rs 97,120 crore, higher than the average of Rs 96,800 crore for the April-December period.

  • Jan 31, 2019
  • GSTN develops system to fetch e-way bill data into monthly sales returns to curb evasion

    Now, businesses supplying goods worth more than Rs 50,000 will have option to include details of e-way bills generated while filing the final monthly sales return under GSTR-1, a move aimed at curbing tax evasion by reporting different sets of supplies data. Matching of invoices of e-way bills with the sales shown in GSTR-1 will help taxmen in assessing whether the supplies have been accurately shown in sales return and GST paid on the same, tax experts said.

  • Jan 30, 2019
  • Proposal to encourage taxmen to file GST profiteering complaints on anvil

    The GST officials are working out mechanism to prompt taxmen to initiate profiteering complaints, which could be taken up for further investigation by the Directorate GeneralNSE 0.00 % of Anti-Profiteering. Currently, only consumers file complaints against businesses for not passing on the benefits of reduction of the rates of Goods and ServicesNSE 0.42 % Tax (GST) on various products. Under the standard operating procedure (SoP) being worked out by the GST officials, the Central and state government tax officers will be encouraged to take up suo moto the issue of profiteering by businesses, sources said.

  • Jan 28, 2019
  • Taxman may examine high usage of input tax credit to set off GST liability

    Concerned over a decline in GST revenues, tax officials are likely to examine the high usage of input tax credit (ITC) to set off tax liability by businesses, sources said. The issue of high ITC was flagged at the meeting of the Group of Ministers (GoM) which was set up by the GST Council to look into the reasons for revenue shortfall being faced by a large number of states. According to sources, availing ITC ideally should not result in loss of revenue but there could be possibility of misuse of the provision by unscrupulous businesses by generating fake invoices just to claim tax credit. During the meeting of the GoM, it was pointed out that as much as 80 per cent of the total GST liability is being settled by ITC and only 20 per cent is deposited as cash.

  • Jan 24, 2019
  • January collections may be the lowest this fiscal

    The goods and services tax (GST) collected in January (for December) is seen to be the lowest in the current fiscal. While the average collections during April-December was Rs 96,800 crore a month, the collections in January are around Rs 93,000 crore. With tax rate cuts on 23 items announced by the GST Council in December coming into effect from January 1, the collections next month may remain subdued too. The collection for December 2017 at Rs 86,703 crore too was nearly 4% lower than the average monthly collection in the 2017-18 fiscal.

  • Jan 24, 2019
  • Cabinet Clears Setting up of National Bench of GST Appellate Tribunal

    The Union Cabinet on Wednesday approved setting up of the national bench of the GST Appellate Tribunal which will act as forum for second appeal in case of dispute and also decide cases where there are divergent orders at the state level. The national bench of the Goods and Services Tax Appellate Tribunal to be located in the capital, would have one member each from Centre and states and a President. "The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the creation of National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT)," an official statement said. Union minister Ravi Shankar Prasad said the national bench of the GST Appellate Tribunal will expedite resolution of disputes under GST laws.

  • Jan 21, 2019
  • Soon, no e-way bills for non-filers of GST returns

    Non-filers of GST returns for six consecutive months will soon be barred from generating e-way bills for movement of goods. The Goods and Services Tax Network is developing an IT system such that businesses that have not filed returns for two straight returns filing cycles, which is six months, would be barred from generating e-way bills, an official said. “As soon as the new IT system is put in place, the new rules will be notified.”

  • Jan 19, 2019
  • Several states opt to double GST threshold

    Kerala is so far the only state to retain the GST threshold at an annual turnover of Rs 20 lakh for businesses in the state, even as half-adozen states agreed to double the registration and tax limit for manufacturers to Rs 40 lakh. So far, six states have decided to double the threshold after the GST Council last week agreed to the move aimed at reducing the compliance burden on small businesses, sources told TOI. An interesting addition to the list is Congress-ruled Chhattisgarh, which had initially argued against raising the limit on the grounds that revenues would be impacted.

  • Jan 16, 2019
  • E-way bill to be integrated with NHAI's FASTag to track GST evasion from April

    The GST e-way bill system is likely to be integrated with NHAI's FASTag mechanism from April to help track movement of goods and check GST evasion. The revenue department has set up an officers committee to integrate e-way bill, FASTag and DMIC's Logistics Data Bank (LDB) services, after consultation with transporters. "It has come to our notice that some transporters are doing multiple trips by generating a single e-way bill. Integration of e-way bill with FASTag would help find the location of the vehicle and when and how many times it has crossed NHAI's toll plazas," the official said.